Electricity Asset Management Plan 2019-2029
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Vector Limited://
Ratings don’t represent the total value of each project to the network. Instead, they are based on the relative benefit and merit of each project compared with all other projects.
The ratings assigned for each target outcome for an individual project are then aggregated, with the relative importance of each outcome being set using a scalar multiplier/weighting. The resulting score allows each project to be ranked and prioritised.
A further overlay is applied during the project-ranking process that considers key business drivers. This allows for the identification and appropriate prioritisation of projects that are:
Non-discretionary – projects that help us meet legal, regulatory or safety requirements (key driver) Enablers – foundation projects needed before other projects can be implemented (key driver) Strategic – projects that help Vector realise its long-term strategy (secondary driver) R&D – projects that fall under a trial or are part of our research and development programme (secondary driver) The ranking process is done on an unconstrained basis, assuming no spending or resource constraints, but provides guidance to the relative importance of different projects. Subject-matter experts participate throughout the project prioritisation process, to ensure the resulting evaluation is credible and tested, and aligns with industry knowledge and experience, which may not be captured by the qualitative inputs included in the modelling process. Draft investment plan: Once projects have been through the portfolio prioritisation process, the draft investment plan is formed, with financial and capacity constraints applied. Different scenarios based on the level of constraint is considered to balance the multiple business objectives. This plan is then reviewed and approved by the executive management team. The risk associated with projects that have not formed part of the draft investment plan following prioritisation is highlighted and acknowledged. 6.2 OUR RESOURCE REQUIREMENTS AND CONSTRAINTS To address the challenge of meeting the power infrastructure requirements of a growing Auckland, we have a panel of Specialist Contractors who compete for the opportunity to deliver the programmes of work. The addition of new specialist contractors gives Vector access to additional skilled resources and supports delivery of the programme of works. To assist with the management of the panel’s resources, we have monthly meetings where we guide our contractors and present our forthcoming programme of work. Our contractors know what work is coming up for the next 18 months, and we expect them to manage their resources to meet our delivery requirements. The size of our contractor panel grows and shrinks to meet anticipated workloads and to accommodate contractors’ resource constraints. We use a modified version of the NZ3910 building and engineering standard contract when we engage a specialist electrical contractor from the panel to be a head contractor. However, depending on the value and complexity of the civil engineering part of a job, we may engage a civil contractor or other specialist contractor using the standard NZ3910 contract. We also engage consultants to help with managing internal workloads, specialist design or other services. This allows us to maintain our schedules without the cost of directly employing extra resources, so we can meet peak workloads or access specialist resources to meet specific project requirements. We are currently reviewing our field services delivery models. As part of this review, we are evaluating a performance framework to enhance Vector’s ability to respond to challenges such as the impact of Auckland Growth and the implementation of our New Health and Safety Policies on fault restoration times, the resource challenges we are facing given the high demand for electrically qualifies workers across NZ and the cost of living in Auckland and the changing expectations of our customers. Final Investment Plan: Following consideration and approval by the executive management team, the final investment plan is reviewed and approved by the Board.
The Vector Digital Group manages technology infrastructure and operational resource requirements to enable the asset management strategy, using a multi-speed delivery model when it comes to development and technology delivery.
The stated platform-centric approach enables standardisation, scalability and synergy of our technical architecture. It also makes the best use of the skills needed to both develop and support technology in several areas, including customer
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